Governance plays a vital role in boosting the investment climate and offers several benefits
to companies and their shareholders.
Corporate governance improves the efficiency of financial markets through a raft of its
instruments, namely:
• Application of international accounting and auditing standards.
• Formation of independent and effective audit committees.
• Conducting regular internal and external audits.
• Implementing transparency principles and full disclosure of financial information.
• Adopting Effective risk management practices.
• Establishing a sound governance framework for the Board of Directors.
The full implementation of governance instruments helps in the following:
• Increasing confidence of stakeholders in the financial market.
• Attracting more investment.
• Reducing fraud and misconduct risks.
• Enhancing stability in the financial system.
Benefits of Corporate Governance in Non-Bank Financial Activities:
• Improve the efficiency of corporate management.
• Boost investor confidence.
• Reduce capital cost.
• Increase the market value of companies.
• Enhance governance of non-bank financial activities.
Corporate governance is a shared responsibility among all company stakeholders, including the board of directors, executive management, shareholders, investors, creditors, and the community.
By implementing corporate governance principles, companies can create a more attractive investment environment and achieve long-term benefits for all stakeholders.
Ø For more details, please check the FRA’s BoD Decree No. 100/2020 on governance rules for companies engaging in non-bank financial activities.
Ø Egyptian Corporate Governance Guide.
Ø Corporate Governance Services Guide.
